Barneys to close stores, including iconic NYC location, as part of $271M deal

Barneys closing stores, including iconic NYC location

Luxury chain Barneys New York reached a $271 million deal with Authentic Brands that would help the troubled retailer stave off total liquidation and avoid low bids in a court auction.

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All seven stores, including its flagship location on Madison Avenue and store in Beverly Hills, would be closed as part of the restructuring plan, the Wall Street Journal reported.

Authentic Brands, which owns brands including Nine West and Aeropostale, in a partnership with Saks Fifth Avenue, reached a "stalking horse purchase agreement" to buy Barneys on Wednesday, The Associated Press reported. A stalking horse purchase agreement is a deal in which an entity such as Barneys selects the buyer in an attempt to avoid low bids as part of a court auction.

Barneys can conduct an auction until Oct. 24. If there are no further bids, Barneys will pursue the agreement with Authentic Brands.

Barney’s filed for Chapter 11 bankruptcy protection in August. It filed after its landlord planned to nearly double its annual rent at its Madison Avenue location to $27.9 million.

If the deal with Authentic Brands goes through, the company plans a tie-in with Saks Fifth Avenue. Versions of Barneys would open within its stores. Saks Fifth Avenue would also run its online operations, the Wall Street Journal reported.

The Associated Press contributed to this report.